High street businesses are set to benefit from a new package of tax and customs reforms designed to make competition fairer between physical retailers and online sellers.
The Government has confirmed it will bring forward changes to low-value imports by six months. From October 2028, goods worth £135 or less will no longer qualify for customs duty relief. The measure, first announced at Budget 2025, means cheap imported goods will become subject to customs import duties.
Ministers say the change will help level the playing field for high street businesses that face competition from low-cost online imports.
The Government is also reviewing how VAT is collected from businesses selling through online marketplaces. The review will examine whether current rules should be extended to ensure online sellers pay the VAT they owe. Any extra revenue raised will be used to support improvements to the business rates system for pubs, restaurants, hotels and other high street businesses.
Alongside these measures, the Government has announced a consultation on VAT reform for land used in new social housing developments. The proposal aims to clarify VAT relief for land used to deliver social homes, helping affordable housing projects progress more quickly while keeping the system affordable for taxpayers.
The Government says the overall package will make the tax and customs system simpler, fairer and more digital, while reducing burdens and supporting business growth.
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